Mortgage Purchase Applications Rise, Refinancing Falls Again

Purchase applications for home mortgages rose a seasonally adjusted 1 percent in the November 3 week, the first increase in 3 weeks which put the unadjusted purchase index 9 percent above its level a year ago. But the slowdown in refinancing continued, with applications falling another 1 percent following the prior week's 5 percent drop, though the refinancing share of mortgage activity grew by 0.3 percentage points to 49.0 percent. Mortgage rates fell back after rising in the prior week to the highest level since July, with the average interest rate on conforming 30-year fixed-rate mortgages ($424,100 or less) down by 4 basis points to 4.18 percent. Despite some slackening in purchase application activity in recent weeks, the year-on-year gain remains at an impressive 9 percent, pointing to strength in underlying home sales.